DeSantis’ Stance Thwarts New Push to Alter Florida Auto Insurance
Florida lawmakers are once again attempting to overhaul the state’s auto insurance system, seeking to repeal the existing no-fault laws. However, Governor Ron DeSantis continues to stand firm in his opposition, creating significant obstacles for the proposed changes.
Florida’s current insurance model mandates that drivers carry personal injury protection (PIP) coverage, regardless of who’s at fault in an accident. The proposed legislation aims to eliminate this requirement, introducing new minimums for bodily injury and property damage liability coverage.
A Recurring Legislative Battle
This isn’t the first time Florida’s no-fault system has been under legislative scrutiny. The push to replace it with mandatory bodily injury liability coverage has been a recurring theme in recent years:
- In 2021, a similar bill passed but was vetoed by DeSantis.
- Lawmakers revisited the issue in 2022 and 2023, but repeal efforts failed to gain traction.
Under the current no-fault system, drivers are required to carry $10,000 in PIP coverage to cover their own medical bills after an accident, regardless of fault. Critics argue that this limit–unchanged since 1979–is insufficient to cover modern medical costs. The proposed changes would eliminate this requirement and, in its place, mandate bodily injury liability coverage.
Potential Changes and Concerns
The latest proposal would repeal the no-fault law, effective July 1, 2026. Drivers would then be required to carry bodily injury and property damage liability coverage.
- The bill proposes a minimum of $25,000 for bodily injury or death of one person.
- Coverage for incidents involving multiple people would be set at $50,000.
- The $10,000 property damage minimum would remain unchanged.
DeSantis has voiced concerns that repealing the no-fault laws could lead to negative outcomes for Florida drivers. The insurance industry echoes these worries, predicting that eliminating PIP and increasing minimum coverage requirements could drive up auto insurance rates.
Industry Predictions
Michael Carlson, president of the Personal Insurance Federation of Florida, is among those who are skeptical of the proposed changes. He believes that increasing the bodily injury coverage requirement to $25,000 would likely result in higher premiums for drivers.
“Higher costs could lead to more drivers opting out of coverage, which could increase uninsured motorist claims and further impact rates,” Carlson said.
He also suggests that requiring bodily injury coverage could lead to more lawsuits, increasing litigation expenses for insurers. Carlson has advocated for allowing recent reforms from HB 837, passed in 2023 designed to lower auto insurance rates in the state, to take full effect before making further changes. Industry groups have described HB 837 as one of the most significant reforms Florida has enacted in decades.
Carlson doesn’t anticipate the current repeal effort advancing, citing Governor DeSantis’ public opposition to the bill, which will have an impact on legislative activity. “He has been clear that he does not want to see adverse unintended consequences, such as rate increases, caused by the change in law,” Carlson said in a report from AM Best.
